‘Soaring Demand' for homes

According to the Royal Institution of Chartered Surveyors (RICS) action must be taken to cope with the soaring demand from potential home buyers, whilst it is also believed that there are not enough homes coming on to the market.

The Government backed Help to Buy Scheme is credited with acting as a catalyst for the surge in demand, whilst it should also be noted that mortgage lenders not currently offering products through the Scheme have made their own limited deposit offers, resulting in spiked competition.

Across the approximate 300 Chartered Surveyors asked the majority reported price rises with the highest margin since 2002 against those with no rises of note.

The Land Registry has reported that the average house price in England and Wales is £167,063, which is still 8% below its peak in November 2007.

It is widely agreed that in order to return to the halcyon days of the property market that efforts must be made to ensure that first time buyers can obtain the required and correct mortgage products.

It appears that the various schemes and offers are having a positive effect, but it will now be a concern that homeowners are holding off the marketing of their property. It is hoped that the increase of demand for homes may now push up property prices in a manageable fashion, and alleviate the concerns for those deciding whether to sell.

Critics are concerned that a sudden surge may lead to a property bubble and spiralling prices but it can be said that regardless of this that an active and bristling property market is an exciting place to be, particularly after the tough times of the last 6-7 years.

For property advice contact RDC Solicitors and speak with Lynette Norris on 01943 601173 or Ian Haynes on 01274 723858